Andrew Mountbatten-Windsor, stripped of his royal titles in 2025, sublet three cottages on his Windsor Royal Lodge estate while paying a "peppercorn rent" to the Crown Estate, according to a National Audit Office (NAO) report published today[2026-06-05] [1, 2, 3]. He lived rent-free or at a nominal rent in the 30-room Royal Lodge for more than 20 years before his eviction and relocation to Marsh Farm on the Sandringham Estate in Norfolk earlier this year [1, 3].
The cottages Andrew sublet have been vacant since April 2026, but the amount of rent he charged subtenants has not been disclosed publicly [2, 3]. The NAO also revealed that Andrew paid a £1 million premium and agreed to spend £7.5 million on improvements to secure a 75-year lease for Royal Lodge at a peppercorn rent; the agreement included compensation clauses for early termination [3].
By contrast, other senior royals pay rents closer to market value. Prince William and Catherine took a 20-year lease on Forest Lodge in Windsor in July 2025, paying £307,200 in annual rent without an upfront premium; they are responsible for internal refurbishments [1, 3]. Princess Beatrice paid 60% to 68% of market rent on her St James's Palace apartment from 2020 to 2025, while Princess Eugenie's rent ranged from 50% to 63% for her Kensington Palace cottage over the same period [1]. King Charles III covers an "adjusted rent" below market value from his Duchy of Lancaster income for the princesses, despite their not being working royals [1, 2, 3].
The Crown Estate, which manages royal properties, operates as a self-funding public corporation following finance ministry guidelines on public funds [1, 3]. The controversy over Andrew's rental arrangements has prompted calls for greater transparency. Former Public Accounts Committee chair Margaret Hodge called it "shocking that the NAO did not know how much money Andrew made from the sublets" [2]. Liberal Democrat lawmaker Norman Baker said, "The royal family is yet again taking the public for a complete ride" [2].
The three cottages on the Windsor estate were vacated in April 2026 following a police search of Royal Lodge in February connected to an investigation into Andrew's suspected misconduct related to Jeffrey Epstein [2, 3]. Andrew's lease agreement contained compensation clauses for early termination, but he was evicted before the lease ended [3].
A Parliamentary Public Accounts Committee inquiry into royal property arrangements will launch later in 2026 to examine these issues further [1, 2, 3].
